Antero Midstream: GP going public as AMGP

[dan_s]

Initial Public Offering of Antero Midstream GP LP (cut from AR's 10-Q)

On April 6, 2017, in connection with its proposed initial public offering, Antero Resources Midstream Management LLC (“ARMM”)
formed Antero Midstream Partners GP LLC (“AMP GP”), a Delaware limited liability company, as a wholly owned subsidiary, and, on April
11, 2017, assigned it the general partner interest in Antero Midstream. Concurrent with the assignment, AMG GP was admitted as Antero
Midstream’s sole general partner and ARMM ceased to be Antero Midstream’s general partner.

On May 3, 2017, ARMM, which indirectly controls Antero Midstream’s incentive distribution rights, announced the pricing of its initial
public offering of 37,250,000 common shares held by its sole member, Antero Resources Investment LLC (“Antero Investment”), at $23.50 per
common share. The underwriters were granted an option to purchase up to an additional 5,587,500 common shares. ARMM anticipates closing
its initial public offering on May 9, 2017. In connection with the offering, ARMM was converted into a Delaware limited partnership, and, in
connection with such conversion, changed its name to Antero Midstream GP LP (“AMGP”). Neither we nor Antero Midstream will receive any
proceeds from the sale of common shares in this offering. 

Following AMGP’s initial public offering and Antero Investment’s anticipated liquidation, certain of our directors and executive officers
will own AMGP common shares as well as profits interests in Antero IDR Holdings LLC, which owns all of Antero Midstream’s incentive
distribution rights.  In addition, certain of our directors and executive officers own a portion of Antero Midstream’s common units.

[cviller]

Dan,
What do you make of this? Why did the private GP holders float 20% of the GP interest? I can't find any decent info on this. If the AM's distributions go up X percent, will AMGP's distributions go up 3X percent? How much? Is there any decent brokerage house analysis available?
Thanks.

[dan_s]

I don't have time to answer all of your questions, but we will be sending out an updated profile and forecast for Antero Resources (AR) today. I am very bullish on AR. See my comments under the Sweet 16 tab.

FYI for the remainder of this month I will be up to my gills updating forecast/valuation models for all of our model portfolio companies. The only time that I get some "free time" for special research projects is at the beginning of each quarter. I need "another me" for stuff like this. When are they going to get that cloning stuff figured out?